The Business of the Future
Understanding your business strategy is critical if you wish to be earning a reasonable return on your investment (defined as total assets plus your time) in your business. That is, being elevated above begging status!
How do you position yourself versus your competitors? What is it that is unique to you/your business? If you are different you get can get great returns and high profitability … if not, you will earn mediocre returns. Because people pay for value!
The business of the future will have two offices, the first one will be in Australia where your staff deal with clients and your technical team work. The second office will be offshore, this will be where all the background office tasks will be performed.
We have clients, who have their total back-office workforce overseas: including bookkeeping, marketing, CRM, quoting, site assistants, etc – they only have a part-time accountant here in Perth … they have an overhead at 10% of their revenue with net profit over 20%. What’s yours?
Outsourced staff are one third of the cost of Australian staff and have significantly better expertise and higher productivity.
This new (well not so new now!) business model will work to add value to your clients and at the same time increase your bottom line. To achieve this however you will need to implement an effective and efficient offshore strategy.
Taking a look at your current Australian businesses will require substantive analysis and then you can develop a new, more efficient way to achieve the goals of your firm and your clients. There are now lots of case studies available to learn from so that you can make your transition easier.
Historically, this was a big business strategy to maximize profits. Outsourcing has now evolved into a viable solution that all businesses can benefit from. Outsourcing does not only bring benefits to the business owner; it also works to benefit existing staff, the local economy as well as the contracting firm.